Dalata Hotel Business Strategy
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AI Summary
The assignment is about analyzing the business strategy of Dalata Hotel, a company that has established itself as a major player in the Canadian market. The task requires identifying opportunities for growth, establishing strategic alliances with other tour and travel companies, and increasing sales viability by tapping into the Canadian market. The goal is to help Dalata Hotel maintain its competitive position in the market and stay ahead of rivals. The assignment draws on research papers from various sources, including academic journals and books, to inform the analysis.
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RUNNING HEAD: Strategic management 0
Name of the student
Topic-strategic Management
University Name-
Name of the student
Topic-strategic Management
University Name-
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Strategic management 1
1 Executive summary
Strategic management is the process which assists organization to evaluate all the internal
and external factors of business to take effective strategic decision. After completing the report,
the main outcome is related to how Dalata hotel could enter into the Canadian market to expand
its busienss. Nonetheless, there are several positive factors of Canada which will help Dalata to
open up its new business in Canada. Dalata hotel needs to focus on following product
differentiation strategy by keeping its tours package more clients oriented. It will have to offer
attractive tour packages to the clients in Canada to attract more clients in market. After assessing
all the factors, the main outcome is that it will be easy for the Dalata Hotel to tap the Canadian
Tours and travel industry.
1 Executive summary
Strategic management is the process which assists organization to evaluate all the internal
and external factors of business to take effective strategic decision. After completing the report,
the main outcome is related to how Dalata hotel could enter into the Canadian market to expand
its busienss. Nonetheless, there are several positive factors of Canada which will help Dalata to
open up its new business in Canada. Dalata hotel needs to focus on following product
differentiation strategy by keeping its tours package more clients oriented. It will have to offer
attractive tour packages to the clients in Canada to attract more clients in market. After assessing
all the factors, the main outcome is that it will be easy for the Dalata Hotel to tap the Canadian
Tours and travel industry.
Strategic management 2
Table of Contents
1 Executive summary.................................................................................................................1
2 Introduction..............................................................................................................................3
3 PESTLE analysis of CANADA...............................................................................................3
4 Competitive Environment........................................................................................................5
5 Internal analysis.......................................................................................................................7
5.1 Resource Audit..................................................................................................................7
5.2 Basis resources of Dalata Hotel Group.............................................................................7
5.3 Specific resources.............................................................................................................8
5.4 Analysis of Core Competencies........................................................................................8
6 The basis of Competitive Strategy...........................................................................................8
7 Conclusion.............................................................................................................................11
8 Recommendation...................................................................................................................11
9 References..............................................................................................................................12
Table of Contents
1 Executive summary.................................................................................................................1
2 Introduction..............................................................................................................................3
3 PESTLE analysis of CANADA...............................................................................................3
4 Competitive Environment........................................................................................................5
5 Internal analysis.......................................................................................................................7
5.1 Resource Audit..................................................................................................................7
5.2 Basis resources of Dalata Hotel Group.............................................................................7
5.3 Specific resources.............................................................................................................8
5.4 Analysis of Core Competencies........................................................................................8
6 The basis of Competitive Strategy...........................................................................................8
7 Conclusion.............................................................................................................................11
8 Recommendation...................................................................................................................11
9 References..............................................................................................................................12
Strategic management 3
2 Introduction
In this report, strategic management analysis has been done to evaluate the potential positive
and negative factors of the selected country. This report is divided into following parts with a
view to assessing the potential outcomes of the particular country which could be used by Dalata
Hotel Company to expand its business. In the starting of this report, general external
environment assessment has been done. After that, competitive environment of the particular
selected country will be taken into consideration. Dalata has the international business chain and
offers several tours and travel packages to clients.
3 PESTLE analysis of CANADA
Canada's economy is highly dominated by the service sector which approximately
contributes around 70% of the total GDP of the country. The major contributors to these sectors
are financial sectors, tour and travel industry and education sector. In addition to this, energy
sector also provides 10% of the world oil reserve in the Canadian economy. However, in order to
assess the viability of Canada for the tours and travel business, management of Dalata needs to
assess all the macro factors of the business.
Political factor
The political pressure in Canada is quite low. As per the views of the political and economic
risk consultancy, it is reflected that Canada enjoys the lowest political risk in the continent. The
political factor of Canada is more stable which resulted in peace and independent business
functions of other organization. However, the government of Canada put high tariffs and traits on
the entrepreneur who wants to start up their new business in its economy. However, Dalata Hotel
could set up its business in Canada by entering into joint ventures and strategic alliance with the
existing business units of Canada. It will be easy for the Dalata Hotel to tap the Canadian Tours
and travel industry.
Economic factors
The economics of Canada is vibrant free- market economy. It is developing at a very fast
pace. The GDP per capital of Canada is 42,157.93 USD (2016) which is 15% higher as
2 Introduction
In this report, strategic management analysis has been done to evaluate the potential positive
and negative factors of the selected country. This report is divided into following parts with a
view to assessing the potential outcomes of the particular country which could be used by Dalata
Hotel Company to expand its business. In the starting of this report, general external
environment assessment has been done. After that, competitive environment of the particular
selected country will be taken into consideration. Dalata has the international business chain and
offers several tours and travel packages to clients.
3 PESTLE analysis of CANADA
Canada's economy is highly dominated by the service sector which approximately
contributes around 70% of the total GDP of the country. The major contributors to these sectors
are financial sectors, tour and travel industry and education sector. In addition to this, energy
sector also provides 10% of the world oil reserve in the Canadian economy. However, in order to
assess the viability of Canada for the tours and travel business, management of Dalata needs to
assess all the macro factors of the business.
Political factor
The political pressure in Canada is quite low. As per the views of the political and economic
risk consultancy, it is reflected that Canada enjoys the lowest political risk in the continent. The
political factor of Canada is more stable which resulted in peace and independent business
functions of other organization. However, the government of Canada put high tariffs and traits on
the entrepreneur who wants to start up their new business in its economy. However, Dalata Hotel
could set up its business in Canada by entering into joint ventures and strategic alliance with the
existing business units of Canada. It will be easy for the Dalata Hotel to tap the Canadian Tours
and travel industry.
Economic factors
The economics of Canada is vibrant free- market economy. It is developing at a very fast
pace. The GDP per capital of Canada is 42,157.93 USD (2016) which is 15% higher as
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Strategic management 4
compared to last five year data. The national income is also 1.58 lakh crores which reflect high
purchasing power parity of clients in the market. Dalata Hotel has high potential in the Canadian
market to increase high turnover. Nonetheless, as compared to other countries, people in Canada
are more inclined towards the high quality of services and tour packages. Therefore, Dalata Hotel
needs to come up with the advanced and high-quality tour packages in the market to attract
clients in Canada. There are some constraints of Canada which could be faced by Dalata Hotel
such as labor shortage, rising labor cost, the decline in productivity and tough legal compliance
program. The Canadian International Figures that were recorded in 2015 reflects that there was
more than 13% decline of the people traveling abroad from Canada due to non-effective tour
packages.
Social factors
It is analyzed that socially, Canada is like any other North American countries. It follows
sophisticated life standards and economic policies and work policies are designed with a view to
allowing people to live their life. The social value, perception, belief, and culture of people in
Canada are more open and they are more inclined towards trying new things. If Dalata hotel
wants to grab the Canadian market then it will have to come with the customized tours and travel
packages in the market to attract clients. However, Dalata Hotel could set its tours and travel
packages high as people up there are less concerned about the price and cost of the tours
packages. In Canada, People are more concerned about the safety security. Therefore, Dalata
needs to focus on development of tours packages which are high in security and safety.
Technological factor
The main reason behind the superior lifestyle of the people in Canada is based on the
advancement of technologies in the country. With the adoption of 4G networks and development
of technologies, communication and connectivity among the people have tremendously
increased. The IT infrastructure in Canada is praiseworthy. It is evaluated that if Dalata Hotel
wants to tap the Canadian market then it will first have to use online cyber computing system to
promote its tours and travel packages. Most of the people in Canada are active on the social
media and other apps which could be used by Dalata Hotel to promote its tours and travel
compared to last five year data. The national income is also 1.58 lakh crores which reflect high
purchasing power parity of clients in the market. Dalata Hotel has high potential in the Canadian
market to increase high turnover. Nonetheless, as compared to other countries, people in Canada
are more inclined towards the high quality of services and tour packages. Therefore, Dalata Hotel
needs to come up with the advanced and high-quality tour packages in the market to attract
clients in Canada. There are some constraints of Canada which could be faced by Dalata Hotel
such as labor shortage, rising labor cost, the decline in productivity and tough legal compliance
program. The Canadian International Figures that were recorded in 2015 reflects that there was
more than 13% decline of the people traveling abroad from Canada due to non-effective tour
packages.
Social factors
It is analyzed that socially, Canada is like any other North American countries. It follows
sophisticated life standards and economic policies and work policies are designed with a view to
allowing people to live their life. The social value, perception, belief, and culture of people in
Canada are more open and they are more inclined towards trying new things. If Dalata hotel
wants to grab the Canadian market then it will have to come with the customized tours and travel
packages in the market to attract clients. However, Dalata Hotel could set its tours and travel
packages high as people up there are less concerned about the price and cost of the tours
packages. In Canada, People are more concerned about the safety security. Therefore, Dalata
needs to focus on development of tours packages which are high in security and safety.
Technological factor
The main reason behind the superior lifestyle of the people in Canada is based on the
advancement of technologies in the country. With the adoption of 4G networks and development
of technologies, communication and connectivity among the people have tremendously
increased. The IT infrastructure in Canada is praiseworthy. It is evaluated that if Dalata Hotel
wants to tap the Canadian market then it will first have to use online cyber computing system to
promote its tours and travel packages. Most of the people in Canada are active on the social
media and other apps which could be used by Dalata Hotel to promote its tours and travel
Strategic management 5
packages. The Canadian government is also promoting organizations which are indulged in using
advanced technologies in their business functioning.
Legal factors
The government of Canada has the view that growth of the tours and travel industry depends
upon the transparent and favorable legislation. It has issued certain legal, regulatory and business
setting compliance programs to support the tours and travel industry development and economic
growth. The legal compliance of Canada is stable and promotes organizations to follow liberal
policies and program. There are several legal laws which need to be complied by the
organization running the business in Canada such as Tours and travel law, property law, patent
act and corporation laws and regulations.
Environmental factors
The environment of Canada is more positive and pollution free which offer the more
positive environment for the organization to set up new business. It is evaluated that with the
positive environmental factors, it would be easy for the Dalata Hotel to start up new busienss in
Canada. However, in spite of easy availability of the resources and raw material, Dalata Hotel
has to invest high amount of investment for arranging employees in business (Baños-Caballero,
García-Teruel, and Martínez-Solano, 2014).
After analyzing all the details and positive and negative factors of Canada, it is inferred that
Dalata Hotel should consider all the legal factors before entering into that particular country.
Dalata Hotel needs to establish a proper corporate governance program before starting up new
business in Canada. Nonetheless, it also has to prepare customized tours and travel packages to
attract more clients. Dalata Hotel should focus on using the Price Skimming strategy but at the
same time, the quality of the tours and travel packages should be high (Grant, 2016).
4 Competitive Environment
This research analyses the tours and travel industry in Canada by using the Michel Porter's five
forces model (Mak, 2015).
packages. The Canadian government is also promoting organizations which are indulged in using
advanced technologies in their business functioning.
Legal factors
The government of Canada has the view that growth of the tours and travel industry depends
upon the transparent and favorable legislation. It has issued certain legal, regulatory and business
setting compliance programs to support the tours and travel industry development and economic
growth. The legal compliance of Canada is stable and promotes organizations to follow liberal
policies and program. There are several legal laws which need to be complied by the
organization running the business in Canada such as Tours and travel law, property law, patent
act and corporation laws and regulations.
Environmental factors
The environment of Canada is more positive and pollution free which offer the more
positive environment for the organization to set up new business. It is evaluated that with the
positive environmental factors, it would be easy for the Dalata Hotel to start up new busienss in
Canada. However, in spite of easy availability of the resources and raw material, Dalata Hotel
has to invest high amount of investment for arranging employees in business (Baños-Caballero,
García-Teruel, and Martínez-Solano, 2014).
After analyzing all the details and positive and negative factors of Canada, it is inferred that
Dalata Hotel should consider all the legal factors before entering into that particular country.
Dalata Hotel needs to establish a proper corporate governance program before starting up new
business in Canada. Nonetheless, it also has to prepare customized tours and travel packages to
attract more clients. Dalata Hotel should focus on using the Price Skimming strategy but at the
same time, the quality of the tours and travel packages should be high (Grant, 2016).
4 Competitive Environment
This research analyses the tours and travel industry in Canada by using the Michel Porter's five
forces model (Mak, 2015).
Strategic management 6
Bargaining power of buyers- It describes the market of output. In the tours and travel industry,
customers are more inclined toward the high quality of the tour packages which are customized
as per their needs and demand. It is analyzed that if data hotel does not provide a high quality of
tours and travel packages to the people in Canada then it may destruct its business in the very
short span of time. In addition to this, tours and travel industry in Canada has several tours and
travel operations such as Carnival, Marriott, Taj, and TUI. The junior and senior class trip
market in Canada is highly dominated by the services offered by TUI group. If Dalata Hotel
wants to establish its business in Canada then it will first have to scale up its services as per the
tour packages offered by TUI. It could be inferred that power of Buyer is quite high in Canada.
Bargaining power of Suppliers- It is observed that in tours and travel industry, suppliers would
be those who would provide the services to Dalata Hotel such as Jump street tours services,
guides and Breakaway tours and travel service providers. In Canada, availability of the human
resources is very low. Therefore, it has to outsource its several services to other existing business
organization. It may require the high amount of cost of capital to establish the strategic alliance
with these competitors. Therefore, it could be inferred that power of suppliers in Canada is quite
high (McKercher, Mak, and Wong, 2014).
The threat of substitute’s product
It is evaluated that industry profitability of Canada is quite high. The threat of substitutes of
Tours and travel packages would be affected by the other substitute products in the market. In
Canada, there are several small amusement parks which are attracting potential clients and
allowing them to choose these small park visits. These may be the high threat for the Dalata
Hotel to sustain its business in Canada (Garibaldi, et al. 2017).
The rivalry among competitors
There are several rivals in Canada market which have gained potential market share such as TUI
group, Taj and Marriott Hotel group. These all groups are offering the customized high quality of
tours and travel services to attract more clients. If Dalata Hotel Group wants to give tough
completion to these tours and travel business group then it will first have to match the quality
scale to these groups offering. The rivalry among competitors would be high (Sung, et al. 2016).
Bargaining power of buyers- It describes the market of output. In the tours and travel industry,
customers are more inclined toward the high quality of the tour packages which are customized
as per their needs and demand. It is analyzed that if data hotel does not provide a high quality of
tours and travel packages to the people in Canada then it may destruct its business in the very
short span of time. In addition to this, tours and travel industry in Canada has several tours and
travel operations such as Carnival, Marriott, Taj, and TUI. The junior and senior class trip
market in Canada is highly dominated by the services offered by TUI group. If Dalata Hotel
wants to establish its business in Canada then it will first have to scale up its services as per the
tour packages offered by TUI. It could be inferred that power of Buyer is quite high in Canada.
Bargaining power of Suppliers- It is observed that in tours and travel industry, suppliers would
be those who would provide the services to Dalata Hotel such as Jump street tours services,
guides and Breakaway tours and travel service providers. In Canada, availability of the human
resources is very low. Therefore, it has to outsource its several services to other existing business
organization. It may require the high amount of cost of capital to establish the strategic alliance
with these competitors. Therefore, it could be inferred that power of suppliers in Canada is quite
high (McKercher, Mak, and Wong, 2014).
The threat of substitute’s product
It is evaluated that industry profitability of Canada is quite high. The threat of substitutes of
Tours and travel packages would be affected by the other substitute products in the market. In
Canada, there are several small amusement parks which are attracting potential clients and
allowing them to choose these small park visits. These may be the high threat for the Dalata
Hotel to sustain its business in Canada (Garibaldi, et al. 2017).
The rivalry among competitors
There are several rivals in Canada market which have gained potential market share such as TUI
group, Taj and Marriott Hotel group. These all groups are offering the customized high quality of
tours and travel services to attract more clients. If Dalata Hotel Group wants to give tough
completion to these tours and travel business group then it will first have to match the quality
scale to these groups offering. The rivalry among competitors would be high (Sung, et al. 2016).
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Strategic management 7
The threat of new entrants
The threat of new entrants in the tours and travel business in Canada is very low. It will require
the high amount of fixed capital investment which will be hard for the new entrants to invest in
the particular span of time. Nonetheless, new entrants would also have to invest the big amount
to establish the strategic alliance with other rivals in the market to set up tours and travel
business. Therefore, it could be inferred that threat of new entrants in Canada tours and travel
market would be low (Bellur, et al. 2015).
5 Internal analysis
The internal analysis is implemented to evaluate the basis and specific resources of Dalata Hotel
group. The resources audit is the process of going through everything and evaluating the
available resources company has to run the business. There are several resources which Dalata
Hotel has in its business (Becker, 2016).
5.1 Resource Audit
5.2 Basis resources of Dalata Hotel Group
Physical resources
Dalata Hotel has more than 40 hotels around the globe. It has established proper communication
channel which connects all of its units around the globe. In addition to this, more than 4000
employees are having expert’s quality to provide best tours and travel services to its clients.
Some of the employees could be promoted to Canada branch to offer quality services in the
Canadian market (Smith, 2014).
Financial resources
The total turnover of Dalata hotel is €225.7m which increased by 158% since last two years in
2017. It is evaluated that company has the strong financial position which may allow it to set up
new tours and travel units in Canada Market.
Human resources
The threat of new entrants
The threat of new entrants in the tours and travel business in Canada is very low. It will require
the high amount of fixed capital investment which will be hard for the new entrants to invest in
the particular span of time. Nonetheless, new entrants would also have to invest the big amount
to establish the strategic alliance with other rivals in the market to set up tours and travel
business. Therefore, it could be inferred that threat of new entrants in Canada tours and travel
market would be low (Bellur, et al. 2015).
5 Internal analysis
The internal analysis is implemented to evaluate the basis and specific resources of Dalata Hotel
group. The resources audit is the process of going through everything and evaluating the
available resources company has to run the business. There are several resources which Dalata
Hotel has in its business (Becker, 2016).
5.1 Resource Audit
5.2 Basis resources of Dalata Hotel Group
Physical resources
Dalata Hotel has more than 40 hotels around the globe. It has established proper communication
channel which connects all of its units around the globe. In addition to this, more than 4000
employees are having expert’s quality to provide best tours and travel services to its clients.
Some of the employees could be promoted to Canada branch to offer quality services in the
Canadian market (Smith, 2014).
Financial resources
The total turnover of Dalata hotel is €225.7m which increased by 158% since last two years in
2017. It is evaluated that company has the strong financial position which may allow it to set up
new tours and travel units in Canada Market.
Human resources
Strategic management 8
The management of the Dalata is highly professional and endeavor towards molding all the
employees to render the best quality of services to its clients. The management of Dalata
establishes complete nexus with the organization development with the employee's growth. The
main aim of the company is to encourage, explore and collaborate with the employees in the
business process system.
5.3 Specific resources
The main specific resources which Dalata hotel has is related to its intangible assets such as
reputation, length of services, intellectual property. It is analyzed by assessing the past data that
company has been performing well in the market whenever it taps the new market through its
intangible assets. These resources assist the company to tap the new market and win the trust of
clients through its brand image and quality services (Chen, et al. 2016).
5.4 Analysis of Core Competencies
The core competency of Dalata Hotel is based on the quality of the tours and travel
services in the market. It has been following product differentiation strategy to develop a core
competency in the market. It is observed that Company has a strong brand image and also
providing a high quality of tours and travel services around the globe at very low cost. The
combination which Dalata Hotel group has set up in its packages is incredible and attracts more
clients in the market. However, it is hard for others to copy this strategy due to their several
restrictions. The business chain of Dalata Hotel is associated with the cyber computing system
which increases the communication channel in all of its units (White, Sondh and Fried, 2015).
The core competency of the Dalata increased when he bought Cork hotel for €10.2m. It resulted
to its core competency in becoming the third biggest in the city centre with 165 bedrooms.
6 The basis of Competitive Strategy
In order to assess the competitive strategy of Dalata in context with Canada, Bowman's Strategy
Clock model is used. This model is used to explore the options for the strategic position i.e. how
tours and travel packages and services offered by Dalata would be positioned to establish a most
competitive position in the market.
The management of the Dalata is highly professional and endeavor towards molding all the
employees to render the best quality of services to its clients. The management of Dalata
establishes complete nexus with the organization development with the employee's growth. The
main aim of the company is to encourage, explore and collaborate with the employees in the
business process system.
5.3 Specific resources
The main specific resources which Dalata hotel has is related to its intangible assets such as
reputation, length of services, intellectual property. It is analyzed by assessing the past data that
company has been performing well in the market whenever it taps the new market through its
intangible assets. These resources assist the company to tap the new market and win the trust of
clients through its brand image and quality services (Chen, et al. 2016).
5.4 Analysis of Core Competencies
The core competency of Dalata Hotel is based on the quality of the tours and travel
services in the market. It has been following product differentiation strategy to develop a core
competency in the market. It is observed that Company has a strong brand image and also
providing a high quality of tours and travel services around the globe at very low cost. The
combination which Dalata Hotel group has set up in its packages is incredible and attracts more
clients in the market. However, it is hard for others to copy this strategy due to their several
restrictions. The business chain of Dalata Hotel is associated with the cyber computing system
which increases the communication channel in all of its units (White, Sondh and Fried, 2015).
The core competency of the Dalata increased when he bought Cork hotel for €10.2m. It resulted
to its core competency in becoming the third biggest in the city centre with 165 bedrooms.
6 The basis of Competitive Strategy
In order to assess the competitive strategy of Dalata in context with Canada, Bowman's Strategy
Clock model is used. This model is used to explore the options for the strategic position i.e. how
tours and travel packages and services offered by Dalata would be positioned to establish a most
competitive position in the market.
Strategic management 9
Source-https://www.google.co.in/search?q=Bowman
%E2%80%99s+Strategy+Clock+of+dalata&tbm=isch&tbo=u&source=univ&sa=X&ved=0ahU
KEwihscaz2ovaAhVKK48KHZdsAuQQsAQIJw&biw=1366&bih=588#imgrc=uWOy7ap7tFM
UpM:
Low price and Low value added (Position-1)
Dalata needs to keep its tours and travel price as low as it could so another rival could undercut
its offering in Canada market. It will add low value to clients in short term.
Low price (Position-2)
It is related to developing cost leadership strategy in Canada Market to grab potential clients.
Hybrid (Position-3)
Source-https://www.google.co.in/search?q=Bowman
%E2%80%99s+Strategy+Clock+of+dalata&tbm=isch&tbo=u&source=univ&sa=X&ved=0ahU
KEwihscaz2ovaAhVKK48KHZdsAuQQsAQIJw&biw=1366&bih=588#imgrc=uWOy7ap7tFM
UpM:
Low price and Low value added (Position-1)
Dalata needs to keep its tours and travel price as low as it could so another rival could undercut
its offering in Canada market. It will add low value to clients in short term.
Low price (Position-2)
It is related to developing cost leadership strategy in Canada Market to grab potential clients.
Hybrid (Position-3)
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Strategic management 10
Dalata Hotel could also follow cost leadership and product differentiation strategy to win the
Canada Tours and travel market.
Differentiation (Position-4)
This strategy will be followed by Dalata to offer high quality of services and add value to clients
through its unique tours and travel packages (Sovani, and Jayawardena, 2017).
Focused differentiation (Position-5)
It is related to following the price skimming strategy to keep the tours and travel packages price
high and offer the perceived value to customers for their better satisfaction.
Risky high margins (Position-6)
This strategy will not be followed by Dalata in the starting. However, if the risky high margin is
followed by Dalata then it will increase the overall return on capital employed in determined
approach.
Monopoly pricing (Position-7)
The monopoly pricing strategy will be negative for the business. If Dalata would follow
monopoly strategy then it will be negative for the business and will put the negative impact on its
brand image in the market (Vogel, 2016).
Loss of market share (Position-9)
This position of Dalata Hotel would be considered as a disaster in a competitive market. In this
strategy, Dalata Hotel would offer a product with the high and at the same time will give less
perceived value to clients in the market.
After analyzing the strategy clock, it could be inferred that Dalata needs to follow only position-
1 to 5 to win over the Canada market. However, rest of the position will showcase that Dalata
Hotel would be highly uncompetitive position (Williams, and Best, 2014).
Dalata Hotel could also follow cost leadership and product differentiation strategy to win the
Canada Tours and travel market.
Differentiation (Position-4)
This strategy will be followed by Dalata to offer high quality of services and add value to clients
through its unique tours and travel packages (Sovani, and Jayawardena, 2017).
Focused differentiation (Position-5)
It is related to following the price skimming strategy to keep the tours and travel packages price
high and offer the perceived value to customers for their better satisfaction.
Risky high margins (Position-6)
This strategy will not be followed by Dalata in the starting. However, if the risky high margin is
followed by Dalata then it will increase the overall return on capital employed in determined
approach.
Monopoly pricing (Position-7)
The monopoly pricing strategy will be negative for the business. If Dalata would follow
monopoly strategy then it will be negative for the business and will put the negative impact on its
brand image in the market (Vogel, 2016).
Loss of market share (Position-9)
This position of Dalata Hotel would be considered as a disaster in a competitive market. In this
strategy, Dalata Hotel would offer a product with the high and at the same time will give less
perceived value to clients in the market.
After analyzing the strategy clock, it could be inferred that Dalata needs to follow only position-
1 to 5 to win over the Canada market. However, rest of the position will showcase that Dalata
Hotel would be highly uncompetitive position (Williams, and Best, 2014).
Strategic management 11
7 Conclusion
After analyzing all the details and influencing factors of Canada, it could be inferred that
Canada is the most suitable place for the Dalata to expand its business. However, the human
resources would be comparatively high but due to the high inclination of clients toward the best
quality of tours and travel packages, Dalata could easily win over the market. In addition to this,
stable legal compliance and governance programs will promote organizations to expand its
business in this region. Now, in the end, it could be inferred that Dalata should expand its
business in Canada market by following two strategies named cost leadership and product
differentiation strategy (Wong and Li, 2015).
8 Recommendation
Most of the people in Canada are active on the social media and other apps which could be used
by Dalata Hotel to promote its tours and travel packages. Therefore, it should use proper online
marketing strategy to promote its business.
The company has the strong brand image and specific resources which could be used by Dalata
to set up competitive position to give tough competition o rival in the market.
Canada market is wide and increased GDP rate reflects the high potential for the Dalata Hotel for
its expansion growth. It should come with the different tours and travel packages.
It should establish the strategic alliance with other existing tours and travel companies in Canada
to easy set-up of its new business (Zhang and Zhang, 2014).
It should give attractive offers to clients through its online dashboard mechanism
Dalata should tap the Canadian market with a view to increase its sales and viability of the
business due To the Brexit and the slowdown in visitor growths in UK.
7 Conclusion
After analyzing all the details and influencing factors of Canada, it could be inferred that
Canada is the most suitable place for the Dalata to expand its business. However, the human
resources would be comparatively high but due to the high inclination of clients toward the best
quality of tours and travel packages, Dalata could easily win over the market. In addition to this,
stable legal compliance and governance programs will promote organizations to expand its
business in this region. Now, in the end, it could be inferred that Dalata should expand its
business in Canada market by following two strategies named cost leadership and product
differentiation strategy (Wong and Li, 2015).
8 Recommendation
Most of the people in Canada are active on the social media and other apps which could be used
by Dalata Hotel to promote its tours and travel packages. Therefore, it should use proper online
marketing strategy to promote its business.
The company has the strong brand image and specific resources which could be used by Dalata
to set up competitive position to give tough competition o rival in the market.
Canada market is wide and increased GDP rate reflects the high potential for the Dalata Hotel for
its expansion growth. It should come with the different tours and travel packages.
It should establish the strategic alliance with other existing tours and travel companies in Canada
to easy set-up of its new business (Zhang and Zhang, 2014).
It should give attractive offers to clients through its online dashboard mechanism
Dalata should tap the Canadian market with a view to increase its sales and viability of the
business due To the Brexit and the slowdown in visitor growths in UK.
Strategic management 12
9 References
Baños-Caballero, S., García-Teruel, P.J. and Martínez-Solano, P., 2014. Working capital
management, corporate performance, and financial constraints. Journal of Business
Research, 67(3), pp.332-338.
Becker, E., 2016. Overbooked: The exploding business of travel and tourism. Simon and
Schuster.
Bellur, V.V., McNamara, B. and Prokop, D.R., 2015. Factors perceived as important by package
tourists: a multivariate analysis. In Proceedings of the 1988 International Conference of Services
Marketing (pp. 31-46). Springer, Cham.
Chen, L.J., Li, G., Zhang, L. and Hu, R., 2016. Market trends and forecast of Chinese outbound
tourism. Chinese Outbound Tourism, 2, p.365.
Garibaldi, R., Stone, M. J., Wolf, E., & Pozzi, A. (2017). Wine travel in the United States: A
profile of wine travellers and wine tours. Tourism management perspectives, 23, 53-57.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Mak, L.M., 2015. Travel agencies’ perception of ISO 9001 certification. The TQM
Journal, 27(6), pp.741-751.
McKercher, B., Mak, B. and Wong, S., 2014. Does climate change matter to the travel
trade?. Journal of Sustainable Tourism, 22(5), pp.685-704.
Smith, S.L., 2014. Tourism analysis: A handbook. Routledge.
Sovani, A. and Jayawardena, C., 2017. How should Canadian tourism embrace the disruption
caused by the sharing economy?. Worldwide Hospitality and Tourism Themes, 9(4), pp.464-470.
Sung, Y.K., Chang, K.C. and Sung, Y.F., 2016. Market segmentation of international tourists
based on motivation to travel: A case study of Taiwan. Asia Pacific Journal of Tourism
Research, 21(8), pp.862-882.
9 References
Baños-Caballero, S., García-Teruel, P.J. and Martínez-Solano, P., 2014. Working capital
management, corporate performance, and financial constraints. Journal of Business
Research, 67(3), pp.332-338.
Becker, E., 2016. Overbooked: The exploding business of travel and tourism. Simon and
Schuster.
Bellur, V.V., McNamara, B. and Prokop, D.R., 2015. Factors perceived as important by package
tourists: a multivariate analysis. In Proceedings of the 1988 International Conference of Services
Marketing (pp. 31-46). Springer, Cham.
Chen, L.J., Li, G., Zhang, L. and Hu, R., 2016. Market trends and forecast of Chinese outbound
tourism. Chinese Outbound Tourism, 2, p.365.
Garibaldi, R., Stone, M. J., Wolf, E., & Pozzi, A. (2017). Wine travel in the United States: A
profile of wine travellers and wine tours. Tourism management perspectives, 23, 53-57.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Mak, L.M., 2015. Travel agencies’ perception of ISO 9001 certification. The TQM
Journal, 27(6), pp.741-751.
McKercher, B., Mak, B. and Wong, S., 2014. Does climate change matter to the travel
trade?. Journal of Sustainable Tourism, 22(5), pp.685-704.
Smith, S.L., 2014. Tourism analysis: A handbook. Routledge.
Sovani, A. and Jayawardena, C., 2017. How should Canadian tourism embrace the disruption
caused by the sharing economy?. Worldwide Hospitality and Tourism Themes, 9(4), pp.464-470.
Sung, Y.K., Chang, K.C. and Sung, Y.F., 2016. Market segmentation of international tourists
based on motivation to travel: A case study of Taiwan. Asia Pacific Journal of Tourism
Research, 21(8), pp.862-882.
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Strategic management 13
Vogel, H. L. (2016). Travel industry economics: A guide for financial analysis. Springer.
White, G.L., Sondh, A.C. and Fried, D., 2015. Analysis of Financial Statement. Analysis.
Williams, K.M. and Best, G., 2014. Short study tours abroad: Internationalizing business
curricula. Journal of Teaching in Travel & Tourism, 14(3), pp.240-259.
Wong, I.A. and Li, X., 2015. Destination services and travel experience in the gaming Mecca:
The moderating role of gambling as a travel purpose among Chinese tourists. Journal of Travel
& Tourism Marketing, 32(1-2), pp.80-99.
Zhang, C. and Zhang, J., 2014. Analysing Chinese citizens' intentions of outbound travel: a
machine learning approach. Current Issues in Tourism, 17(7), pp.592-609.
Vogel, H. L. (2016). Travel industry economics: A guide for financial analysis. Springer.
White, G.L., Sondh, A.C. and Fried, D., 2015. Analysis of Financial Statement. Analysis.
Williams, K.M. and Best, G., 2014. Short study tours abroad: Internationalizing business
curricula. Journal of Teaching in Travel & Tourism, 14(3), pp.240-259.
Wong, I.A. and Li, X., 2015. Destination services and travel experience in the gaming Mecca:
The moderating role of gambling as a travel purpose among Chinese tourists. Journal of Travel
& Tourism Marketing, 32(1-2), pp.80-99.
Zhang, C. and Zhang, J., 2014. Analysing Chinese citizens' intentions of outbound travel: a
machine learning approach. Current Issues in Tourism, 17(7), pp.592-609.
Strategic management 14
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